News
Analysis
Europe’s
Been Negotiating by the Book, but Trump’s Tearing It Up
The Trump
administration sees tariff talks as a chance to pressure a rival into
concessions. E.U. officials have acted as though they were dealing with an
ally.
Jeanna
Smialek
By Jeanna
Smialek
Reporting
from Brussels and Paris
https://www.nytimes.com/2025/05/24/world/europe/europe-trade-trump-50-percent-threat.html
May 24, 2025
The European
Union has been following tried-and-true rules of global commerce as it tries to
negotiate with the Trump administration to avert painful tariffs on cars,
pharmaceuticals and just about everything else.
The problem?
President Trump is ripping up that rule book.
Mr. Trump
announced in a Truth Social post on Friday morning that he is recommending a 50
percent tariff on European imports as of June 1, claiming that the bloc’s trade
barriers, taxes, corporate penalties and other policies had contributed to a
trade imbalance with the United States that was “totally unacceptable.”
“The
European Union, which was formed for the primary purpose of taking advantage of
the United States on TRADE, has been very difficult to deal with,” Mr. Trump
wrote, adding, “Our discussions with them are going nowhere!”
The surprise
announcement comes after months of back-and-forth talks between the two
enormous economies that have made, as Mr. Trump suggested, limited headway.
European
officials have approached negotiations as though they are reasoning with an
ally. But they have met with a Trump administration that sees this less as a
chance for two geopolitical friends to seek a mutually beneficial solution —
and rather as an opportunity to pressure a commercial rival into making
concessions.
Mr. Trump
has imposed round after round of tariffs on the 27-nation economic bloc and the
world since taking office in January. He has hit sectors like steel and
aluminum and cars with specific tariffs, while also threatening to place higher
across-the-board levies on most American trading partners. But back in April,
he announced that he would pause that latter category for a 90-day period as
countries negotiated deals.
The
president’s announcement, if implemented, would not only hit the European Union
with those across-the-board tariffs before the end of that planned negotiating
period, it would also more than double the rate the bloc expected.
In talks,
the bloc’s policymakers have suggested what they have billed as win-win
solutions, including a plan to drop tariffs on industrial products to zero and
buying more American gas.
But American
negotiators have been looking for one-way offers, diplomats, officials and
people familiar with the negotiations have said, and White House officials
themselves have implied this is not a give and take. It is just a take.
“I believe
the president believes that the E.U. proposals have not been of the same
quality that we’ve seen from our other important trading partners,” Scott
Bessent, the U.S. Treasury secretary, said on Fox News on Friday.
Tariffs are
only one arena in which the United States has been overhauling its relationship
with Europe, which has for generations ranked among America’s closest allies.
Mr. Trump
has taken verbal shots at Volodymyr Zelensky, the president of Ukraine, while
pulling back from full-throated support for Ukraine in its war against Russia.
He has insisted that America will no longer foot the bill for Europe’s
security, and has even suggested that it might not come to the support of NATO
members that he says are not chipping in enough for their own defense.
As Mr. Trump
remolds the basic contours of the U.S.-Europe relationship, he is pressuring
the bloc to make several trade-related changes that E.U. officials are
unwilling to even consider.
Administration
officials have also come after Europe for its regulation of digital services
and social media companies — also policies that European officials have been
unwilling to reconsider.
But unlike
smaller economies like Britain, which has already struck a deal with the Trump
administration, the European Union has a big enough trading relationship with
the United States that its officials have believed that they had some amount of
leverage.
Europe’s
trading relationship with the United States is the largest in the world, by
some measures. Nearly $5 billion in goods and services cross the Atlantic
between the two partners every single day, by E.U. estimates. And while Europe
sells America more goods than it buys — the goods trade deficit was about $180
billion in 2023 — it purchases more American services than it sells back.
Maros
Sefcovic, the E.U. trade commissioner, and his colleagues have traveled
repeatedly to Washington to talk with Howard Lutnick, the commerce secretary,
and Jamieson Greer, the U.S. trade representative.
Mr. Sefcovic
talked to his counterparts in the United States on Friday after Mr. Trump’s
threat, and posted on social media afterward that “EU-US trade is unmatched
& must be guided by mutual respect, not threats. We stand ready to defend
our interests.”
Besides
making offers, European officials have also prepared two waves of
countermeasures that would hit American goods coming into Europe with higher
tariffs if no deal is reached. The second set of countertariffs — which would
target 95 billion euros-worth of American goods that could range from bourbon
to soybeans — is still being refined.
Neither
Europe’s offers nor its threats have been greeted warmly by the administration.
“There are
some countries that are impossible, like the European Union,” Mr. Lutnick said
at an Axios event earlier this week.
Analysts in
Washington and Brussels said on Friday that they viewed the 50 percent tariff
as a negotiating tactic. But how the feud might resolve was unclear.
“There is
some serious daylight between the E.U.’s expectations of what it can achieve in
these talks and what the U.S. administration is willing to give,” said Jörn
Fleck, senior director with the Europe Center at the Atlantic Council in
Washington.
If 50
percent tariffs were to actually take effect and last, they would be crushing
for the bloc. The European Union currently faces 10 percent across-the-board
tariffs on its exports, like other nations. After the 90-day pause expires in
July, the bloc was expecting to face 20 percent tariffs, based on what the
United States had previously announced.
European
officials have been holding out hope that tariffs would instead return to
something like what had prevailed before this year, a reduction from even the
current 10 percent rate. But that is not what Mr. Trump’s team is currently
offering.
“The
president will decide if they’ve made us an offer worthy of modifying their
tariff terms,” Mr. Lutnick said earlier this week. “If they haven’t made us an
offer that modifies it, the president will write them a letter saying, ‘Dear
country A, we deeply appreciate doing business with you. Here’s your tariff
rate.’”
And, he
said, “there will be no floor below 10.”
Melissa Eddy
contributed reporting from Berlin and Ana Swanson from Washington.
Jeanna
Smialek is the Brussels bureau chief for The Times.
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